Correlation Between Samsung Electronics and Blackstone
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Blackstone at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Samsung Electronics and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and Blackstone Group, you can compare the effects of market volatilities on Samsung Electronics and Blackstone and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Samsung Electronics with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Blackstone.
Diversification Opportunities for Samsung Electronics and Blackstone
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Blackstone is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and Samsung Electronics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Samsung Electronics Co are associated (or correlated) with Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Blackstone go up and down completely randomly.
Pair Corralation between Samsung Electronics and Blackstone
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Blackstone. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.18 times less risky than Blackstone. The stock trades about -0.01 of its potential returns per unit of risk. The Blackstone Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7,306 in Blackstone Group on September 3, 2024 and sell it today you would earn a total of 10,814 from holding Blackstone Group or generate 148.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Blackstone Group
Performance |
| Timeline |
| Samsung Electronics |
| Blackstone Group |
Samsung Electronics and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Blackstone
The main advantage of trading using opposite Samsung Electronics and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Blackstone can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Blackstone will offset losses from the drop in Blackstone's long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Xiaomi | Samsung Electronics vs. Panasonic Corp |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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